Redbox bets DVD rental kiosks are making a comeback

Walmart is showing how it might make use of VUDUafter purchasing the 1080p movie streaming house earlier this year, now that the two have teamed up with Disney to throw in a free digital copy of Toy Story 3 with each one purchased at the store on DVD or Blu-ray. When the movie goes on sale today, customers will receive a download code they can use on their nearest VUDU player (now including Boxee on the Box, PC or Mac) to stream some Buzz and Woody at any time without a disc involved. Walmart and VUDU are quick to describe this mix of physical and digital access as the future of content, and we're thinking this type of promotion is about to become much more widespread since Amazon's already offered a similar deal with Disc+, and Best Buy purchased CinemaNow specifically for this type of offer. The only question now is if customers will start asking "which streaming service does this connect to?" before they run out to buy a new Blu-ray instead of simply looking for the lowest price or other promotional tie-in.